ITC on canteen
Query (Issue) Started By: – Shankar Nayakar Dated:- 17-4-2018 Last Reply Date:- 24-1-2019 Goods and Services Tax – GST
Got 25 Replies
GST
Dear sir,
\nwe are manufacturing co. and having canteen facility also in co. premises.
\nthird party is cooking here and raise invoice with GST to us., we are paying him with GST.
\nhowever company is charging nominal fee from employees.
\nin this scenario, ITC is eligible or not?
\nReply By Alkesh Jani:
\nThe Reply:
\nSir, In my point of view ITC is not available.
\nReply By Alkesh Jani:
\nThe Reply:
\nSir, Please refer Section 17(5) of CGST Act, 2017. Moreover, it has no nexus with the business or furtherance of business.
\nReply By Shankar Nayakar:
\nThe Reply:
\nsir, please refer attached copy of AAR, where it is stated that in GST Scenario, providing of canteen service is called as "outward supply"
\nhttp:\/\/keralataxes.gov.in\/wp-content\/uploads\/2018\/04\/C3.531.18_Canteen_Services.pdf
\nkindly inform, can we avail ITC on that i<\/p>\n
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\nThe Reply:
\nValuation under Valuation Rules has to be determined, if an assessee is unable to determine valuation under the Act due to various factors. Rules are not preferred to the Act. Rules are meant for "help" Rules cannot override the Act.
\nReply By subramanian vijayakumar:
\nThe Reply:
\nI endorse sethi ji view he can not claim and avail ITC
\nIt is outdoor catering
\nReply By KASTURI SETHI:
\nThe Reply:
\nITC in respect of 'Catering (Food and Beverage etc) & 'Works Contract Service' on the same taxable output service is virtually denied.
\nReply By CASusheel Gupta:
\nThe Reply:
\nIssue – Valuation as per Act\/Rules
\nSection 15 (1) on valuation states – The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply
\nThis sub sectio<\/p>\n
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\nWe need to read the exception which allows ITC where inward supply of food and beverages, outdoor catering are used for making outward supply. As such where a banquet hall, sub contracts supply of food and sub-contractor charges GST, the banquet hall can take input.
\nBut the restriction has been put by notification 11\/2017, where caterer is charging GST @ 5% he cannot take ITC. Even a caterer can take input if he is charging 18%.
\nComments of experts are welcome.
\nReply By Himansu Sekhar:
\nThe Reply:
\nValue addition is not a factor to determine the ITC. No where it has been mentioned. The requirement of the Law has to be observed to get the benefits of ITC. The credit is not allowable when specifically barred under Sec. 11(5).
\nReply By JAIPRAKASH RUIA:
\nThe Reply:
\nHumbly but Surprisingly, when Mr. Sushil Gupta is raising some points clearly producing the provision of the act and rule, most of the expert preferring to give ver<\/p>\n
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\nReply By JAIPRAKASH RUIA:
\nThe Reply:
\nSir, I have high regards for all the experts. I am sorry if I have hurt some one, my intention was not that but to raise the standard of this august platform with it's democratic character.
\nReply By uday kumar:
\nThe Reply:
\nSir,
\nI am in consonance with the expert's view that credit is not admissblad, not withstanding that the service is utilised in the co<\/p>\n
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\n There should be only one AAR.
\nReply By Rakesh Chitkara:
\nThe Reply:
\nReply No.14 \/ 30 April by Hon'ble Mr Jaiprakash ji Ruia : Emplying the word HEALTHY : Unable to fathom usage in that sentence. Will he kindly elaborate the intent and meaning behind using this word ?
\nI tried raising standard of debate but failed. Did the next best thing : raised the level of table. Will that suffice Sir ?
\nReply By JAIPRAKASH RUIA:
\nThe Reply:
\nI Apologize to experts. The only intention of the post was that learners like me learn lot of thing from what experts post giving their valuable time and a detailed discussion add experience to us.We know that expert like you get very less time to communicate on such platform but still we expect that you all shower your knowledge and experience. Sir, You have a rich experience in Indirect taxation, I request you to be more active on discussion board and provide guidance to us. I also want to lear<\/p>\n
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